A unique rule in America’s fiscal system means that the world’s largest economy is <a href="https://www.telegraph.co.uk/business/2023/05/01/us-risks-running-out-of-cash-by-june-without-higher-debt/">about to run out of money</a>.

US lawmakers have been arguing over whether to raise or suspend the so-called “debt ceiling”, which determines how much money the US government can borrow.

Treasury Secretary Janet Yellen has warned that if an impasse between Republicans and Democrats is not broken, the administration will not have enough cash to pay its debts as early as June 1.

The political stalemate over increasing it is deepening. If it is not resolved, there is a looming risk that the US government could default on its debt.

Government runs the risk of not being able to meet its public spending obligations{ai:summary}<p>US fiscal system faces crisis
America's fiscal system is on the verge of falling apart due to a unique rule that restricts borrowing amounts. The "debt ceiling" has become a contentious issue between US lawmakers, and unless they agree to raise or suspend it soon, the US will run out of funds by June 1. As a result, there is a possibility that the US government could default on its debts.</p><p>The impasse between Republicans and Democrats over increasing the borrowing limit is becoming more complicated. Treasury Secretary Janet Yellen has urged lawmakers to come to a resolution, but to no avail. The looming crisis is a grave threat to the global economy, and the US needs to find a way to keep the fiscal system afloat.</p>

What is the US debt ceiling and what will it mean if it isn’t raised?

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